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Synopsys beats earnings, raises guidance, and remains a key player in AI chip design despite debt and risks.

Company Fundamentals
07 Oct 2026
24/7 Wall Street
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Bullish
Synopsys beats earnings, raises guidance, and remains a key player in AI chip design despite debt and risks.

Synopsys reported strong Q3 results with revenue up 42.4% year-over-year and earnings per share beating estimates for the fourth consecutive quarter. The company raised its full-year earnings and free cash flow guidance, driven by growth in its EDA software used in AI chip design and the acquisition of Ansys. Despite carrying $10 billion in acquisition debt and facing risks like China export controls and slowing EDA growth, Synopsys continues to dominate its market with a $10.9 billion backlog and expects double-digit growth next year. The stock has delivered substantial long-term returns, and the company’s strategic position in increasingly complex chip design keeps it attractive to investors.

Synopsys (SNPS) trades at USD 501.91 on Pluang as of Oct 07, 2026 18:12 WIB, down 0.65% on the day. Despite the slight dip, the company holds a strong market cap of $96.81 billion and an enterprise value of $104.04 billion. The Pluang platform shows a typical hold time of 71 days for SNPS, with 71% of orders being sell and 29% buy, reflecting cautious investor sentiment even as Synopsys raises its earnings guidance and maintains a $10.9 billion backlog.

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